Correlation Between AiXin Life and Pacific Ventures

Can any of the company-specific risk be diversified away by investing in both AiXin Life and Pacific Ventures at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AiXin Life and Pacific Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AiXin Life International and Pacific Ventures Group, you can compare the effects of market volatilities on AiXin Life and Pacific Ventures and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AiXin Life with a short position of Pacific Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiXin Life and Pacific Ventures.

Diversification Opportunities for AiXin Life and Pacific Ventures

0.0

Correlation Coefficient

AiXin Life  Pacific Ventures

Pay attention - limited upside

The 3 months correlation between AiXin and Pacific is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AiXin Life International and Pacific Ventures Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Ventures and AiXin Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AiXin Life International are associated (or correlated) with Pacific Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Ventures has no effect on the direction of AiXin Life i.e., AiXin Life and Pacific Ventures go up and down completely randomly.

Pair Corralation between AiXin Life and Pacific Ventures

If you would invest  1.80  in AiXin Life International on December 29, 2024 and sell it today you would earn a total of  2.40  from holding AiXin Life International or generate 133.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AiXin Life International  vs.  Pacific Ventures Group

AiXin Life International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AiXin Life International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, AiXin Life displayed solid returns over the last few months and may actually be approaching a breakup point.

Pacific Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pacific Ventures Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Pacific Ventures is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AiXin Life and Pacific Ventures

The main advantage of trading using opposite AiXin Life and Pacific Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiXin Life position performs unexpectedly, Pacific Ventures can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pacific Ventures will offset losses from the drop in Pacific Ventures' long position.

The idea behind AiXin Life International and Pacific Ventures Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.